Layoffs imminent following fuel price increases

Multa Fidrus, The Jakarta Post, Tangerang

Tens of thousands workers employed at industrial firms in Tangerang are facing being laid off, a consequence of the big fuel price hike on Oct. 1, a provincial councillor has claimed.

The fuel price hike had made production costs unprofitable and to cut losses industrialists were now seriously considering massive layoffs, said councillor Agus Puji Rahardjo from the Prosperous Justice Party (PKS).

Since fuel prices leaped an average 126 percent on Oct. 1, at least one company in the industrial city of Tangerang has laid off its 218 workers, namely PT Jabar Utama Wood Industry (JUWI), a wood floor producer on Jl. Raya Serang.

Joko Pitono, chairman of the PT JUWI labor union, said workers started staging protests against the layoffs in the company compound a few days ago.

The company's human resource manager Waskito Sani refused to comment suggesting that journalists contact the company's lawyers in Jakarta for further details.

Amid threats of massive layoffs, councillor Agus urged the Tangerang municipality government to take necessary measures to cushion the impact of fuel price hikes on industry in Tangerang.